In general, if there is a 2% decrease in interest rates, you should consider refinancing. This figure is generally accepted as a threshold when comparing the costs of refinancing a mortgage and the savings of a lower rate.  There are other factors you should take into consideration, for example, how long you plan on living in the same residence. Some other considerations are listed below:

Who Should Consider Mortgage Refinancing?

• If you have an adjustable rate mortgage and rates are rising

• If your current mortgage rate is higher than the prevailing rate.

• If you have an adjustable rate and want to lock in so you don't have to worry about rising interest rates.

• If you wish to improve your cash flow.

• If you want to build up equity more quickly by converting to a shorter term loan.

• Those who plan on living in their home for several years.

Who Shouldn't Consider Mortgage Refinancing:

• If you have higher interest rate debt such as credit cards and other personal loans. Generally, the rates on these types of debt run higher than mortgage rates.
  

• If you plan on moving in the near future.

• If interest rates are higher than your current mortgage

• If you're close to paying off your mortgage.

In many ways, your house is like a gold mine. If you have discipline and knowledge of the benefits of refinancing, you can tap into its bounty for years to come.